If a company discovers an error in the same accounting period that the error was made, what do you do? What about if a company discovers the accounting error after books closed?
Before books closed:
- Reverses the erroneous entry and records a correct entry.
After books closed:
- Treats the correction like a prior period adjustment.
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.